BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1735
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          Date of Hearing:   April 29, 2014

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                               Susan A. Bonilla, Chair
                     AB 1735 (Hall) - As Amended:  April 23, 2014
           
          SUBJECT  :   Nitrous oxide: dispensing and distributing.

           SUMMARY  :   Declares that anyone who knowingly dispenses or  
          distributes nitrous oxide (NOS) to a person who is going to use  
          the NOS in an illegal manner, who then proximately causes great  
          bodily injury or death to himself, herself, or another person,  
          is guilty of a misdemeanor, and sets forth documentation  
          requirements for the sale of NOS.  Specifically,  this bill :  

          1)States that a person who dispenses or distributes NOS to a  
            person, knowing or having reason to believe that the person is  
            going to use NOS in an illegal manner, as specified, who then  
            proximately causes great bodily injury or death to himself,  
            herself, or another person, is guilty of a misdemeanor, and  
            shall be punished by imprisonment in a county jail, not to  
            exceed six months, or by a fine not to exceed one thousand  
            dollars ($1,000), or by both that fine and imprisonment.

          2)Clarifies that this bill does not preclude prosecution under  
            any other law. 

          3)Requires a person who dispenses or distributes NOS to record  
            each transaction as follows:

             a)   The person dispensing or distributing NOS shall require  
               the purchaser to sign a written or electronic document and  
               provide a complete residential address and present a valid  
               government-issued photo identification;  

             b)   The person dispensing or distributing NOS shall sign and  
               date the document and shall retain the document at the  
               person's business address for one year from the date of the  
               transaction; and, 

             c)   The person shall make the documents available during  
               normal business hours for inspection and copying, upon  
               presentation of a duly authorized search warrant, by  
               officers or employees of the California State Board of  








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               Pharmacy or of other law enforcement agencies of this state  
               or the United States.

          4)Requires the document used to record each transaction to  
            inform the purchaser of all of the following:

             a)   That inhalation of NOS outside of a clinical setting may  
               have dangerous health effects;

             b)   That it is a violation of state law to possess NOS or  
               any substance containing nitrous oxide, with the intent to  
               breathe, inhale, or ingest it for the purpose of  
               intoxication; and,

             c)   That it is a violation of state law to knowingly  
               distribute or dispense NOS or any substance containing NOS,  
               to a person who intends to breathe, inhale, or ingest it  
               for the purpose of intoxication.

          5)Exempts the following from the documentation requirements in  
            this bill:

             a)   Any person who administers nitrous oxide for the purpose  
               of providing medical or dental care, if administered by a  
               medical or dental practitioner licensed by this state or at  
               the direction or under the supervision of a practitioner  
               licensed by this state;

             b)   The sale of NOS contained in food products for use as a  
               propellant; and,

             c)   The sale or distribution of NOS by licensed wholesalers  
               or manufacturers, as specified. 

          6)States that no reimbursement is required by this bill because  
            the only costs that may be incurred by a local agency or  
            school district will be incurred because this act creates a  
            new crime or infraction, eliminates a crime or infraction,  
            changes the penalty for a crime or infraction, or changes the  
            definition of a crime.

           EXISTING LAW  :

          1)Provides that any person who possesses NOS or any substance  
            containing NOS with the intent to breathe, inhale, ingest for  








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            the purposes of causing a condition of intoxication, elation,  
            euphoria, dizziness, stupefaction, or dulling of the senses,  
            or for the purposes of, in any manner, changing, distorting,  
            or disturbing the audio, visual, or mental processes, or who  
            knowingly with the intent to do so, is under the influence of  
            nitrous oxide is a guilty of a misdemeanor punishable by  
            imprisonment in a county jail by a term not to exceed six  
            months, by a fine not to exceed $1,000, or by both  
            imprisonment and a fine.  (Penal Code (PC) Section 381b)

          2)States that every person who sells, furnishes, administers,  
            distributes, or gives away, or offers to sell, furnish,  
            distribute, or give away a device, canister, tank, or  
            receptacle either exclusively containing NOS, or exclusively  
            containing a chemical compound containing NOS to a person  
            under 18 years of age is guilty of a misdemeanor punishable by  
            imprisonment in a county jail by a term not to exceed six  
            months, by a fine not to exceed $1,000, or by both  
            imprisonment and a fine.  The court shall consider ordering  
            community service as a condition of probation.  (PC 381c (b))

          3)Establishes the California Board of Pharmacy to administer and  
            enforce the provisions of the Pharmacy Law.  (Business and  
            Professions Code (BPC) Section 4000 et seq.)

          4)Defines a "wholesaler" as a person who acts as a wholesale  
            merchant, broker, jobber, customs broker, reverse distributor,  
            agent, or a nonresident wholesaler, who sells for resale, or  
            negotiates for distribution, or takes possession of, any  
            dangerous drug, as specified.  A wholesaler must have a  
            license from the California Board of Pharmacy.  (BPC 4043,  
            4160). 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           1)Purpose of this bill  .  This bill makes it a crime for someone  
            to sell NOS to another person that the seller knows or has  
            reason to believe will use it for the purpose of getting high,  
            and who then causes serious injury or death to him or herself  
            or others while under the influence.  This bill also requires  
            the seller to check the buyer's government-issued ID, obtain  
            his or her signature and residential address in writing, see  
            a, and provide a disclosure about  risks and laws pertaining  








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            to NOS.  This bill is sponsored by the Los Angeles County  
            Sheriff's Department and the California State Sheriff's  
            Association.

           2)Author's statement  .  According to the author's office,  
            "Illegal and unsafe to ingest in a nonclinical setting,  
            Nitrous Oxide 'NOS,' has resulted in violent assaults, sexual  
            assaults, overdoses and traffic collisions. Often times NOS is  
            advertised on social media through illegal parties. The  
            increasing awareness and monitoring of social media for  
            preventive measures and intelligence led policing to pre-empt  
            illegal drug parties. There are harmful effects on people  
            using NOS and an environmental impact of this gas.

            "There are certain distributors who are selling NOS for  
            recreational use or parties.  This legislation would crack  
            down on these unsafe practices."

           3)Nitrous oxide  .  Nitrogen oxide (N2O), more commonly known as  
            'laughing gas' or NOS, is colorless, nonflammable gas with a  
            slightly sweet odor, and is stable at room temperature.    

            NOS is legitimately used for medical and dental anesthesia and  
            analgesia, although it is abused as a recreational drug.  It  
            is also used as food processing propellant (e.g. Easy Cheese,  
            whipped cream), and is widely utilized diverse industries such  
            as semiconductor manufacturing, analytical chemistry, chemical  
            manufacturing, and even rocketry and auto racing.

            NOS is regulated by the U.S. Food and Drug Administration  
            (FDA) as a prescription drug, and there are federal standards  
            for its manufacture and distribution, and safety requirements  
            for medical gas containers. 

           4)Nitrous oxide abuse  .  NOS has substantial potential for abuse.  
             According to the Compressed Gas Association (CGA), NOS'  
            painkilling and numbing qualities begin to take effect when  
            the gas is inhaled at concentrations of 10%.  At higher  
            concentrations, a sense of well-being or intoxication may be  
            experienced. 
             

             NOS readily displaces air, and can quickly lead to  
            asphyxiation.  Prolonged exposure to high levels of NOS, or a  
            series of inhalations without breathing clean air between  








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            inhalations, can result in death. 


            NOS that is inhaled over a long period of time can also lead  
            to a vitamin B12 deficiency. When the level of vitamin B12 in  
            the body is reduced, the red blood cell count is lowered,  
            anemia results, and nerves degenerate. A vitamin B12  
            deficiency may cause a person to: have painful sensations in  
            the arms or legs, have an unsteady walk, become unbalanced and  
            tend to fall over, feel or appear to be irritable, or suffer  
            intellectual deterioration.

           5)Auto supply stores  .  According to the sponsors, this bill is  
            targeted at primarily at auto supply stores, which are the  
            primary source of NOS for personal recreational use.  In the  
            automotive industry, NOS is used a fuel additive used to  
            increase the amount of oxygen available for the engine to  
            burn, thereby increasing power.  It is also in this industry,  
            as the LA County Sheriff's reports note, that automotive shops  
            are selling bulk quantities of the gas for use at parties.


            In 2013, federal authorities performed a 15-month  
            investigation that found car racing supply stores in Orange  
            County, Los Angeles County and the Inland Empire have been  
            selling NOS to customers who used the gas to get high, which  
            has also led to accidents or overdose.



            This bill would make it a crime to sell NOS to someone the  
            seller knows, or has reason to know, will use it to get high,  
            and then, while intoxicated, injures or kills him or herself  
            or others.  This bill will also require sellers to alert  
            purchasers to current law on the abuse of NOS and potential  
            adverse effects, check the purchaser's identification and  
            record the purchaser's complete residential address.  This  
            also bill requires this signed record to be retained for one  
            year and made available during normal business hours for  
            inspection and copying, upon presentation of a duly authorized  
            search warrant, by officers or employees of the California  
            State Board of Pharmacy or of other law enforcement agencies  
            of this state or the United States.










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            This bill exempts licensed wholesalers and manufacturers from  
            the reporting requirements, as they are presently subject to  
            extensive recordkeeping requirements and have not been  
            implicated in the diversion activities this bill seeks to  
            curtail.  



           6)Technical amendment  .  The committee recommends clarifying that  
            wholesalers licensed by the Board of Pharmacy are exempt from  
            the reporting requirements of this bill. 

             
             Page 3, line 27, after "a," strike out "licensed wholesaler"  
            and insert wholesaler licensed by the Board of Pharmacy"

           7)Arguments in support  .  The Los Angeles County Sheriff's  
            Department writes, "Nitrous oxide use has spiked in the last  
            several years.  Social media has become a popular place to  
            advertise parties that include nitrous oxide.  My Department  
            has investigated murder, assault, rape, vehicle collisions,  
            and other crimes that surround the use of nitrous oxide.
             
             "Oftentimes, businesses that advertise themselves as auto  
            parts suppliers conduct a large business as distributors of  
            nitrous oxide which is used at large parties advertised on  
            social media.  Currently, that practice is not illegal;  
            however, Assembly Bill 1735 will help address this problem."

           8)Arguments in opposition  . The American Civil Liberties Union  
            writes, "[W]e are concerned about infringing on individual's  
            right to privacy in their purchases of lawful products by  
            requiring them to provide their name, address, and driver's  
            license information.  People should not be required to provide  
            detailed personal information to purchase products.  This is  
            not just an abstract privacy concern, but also a safety issue  
            because retailers and their employees could use the  
            information for unauthorized purposes.  Finally, the state  
            should not be requiring the gathering of personal information  
            without demonstrating a compelling need for that information  
            and showing that there are no less intrusive means to achieve  
            that interest."

           9)Previous legislation .  AB 1015 (Torlakson), Chapter 266,  








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            Statutes of 2009,  made it a misdemeanor for a person to sell  
            or furnish to a person under the age of 18 years a canister or  
            device containing nitrous oxide or a chemical compound mixed  
            with nitrous oxide.

           10)Double referred  .  This bill was heard by the Assembly Public  
            Safety Committee on March 25, 2014, and was passed on a 7-0  
            vote.   

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Los Angeles County Sheriff's Department (sponsor)
          California State Sheriff's Association (sponsor)

           Opposition 
           
          American Civil Liberties Union
           
          Analysis Prepared by  :    Sarah Huchel / B.,P. & C.P. / (916)  
          319-3301